A $350,000 mortgage at 7% interest for 30 years has a monthly payment of $2,329 in principal and interest. Over the life of the loan, you will pay $488,281 in total interest, making the total cost $838,281.

Key Numbers

• •Monthly payment (P&I): $2,329
• •Total interest over 30 years: $488,281
• •Total cost of the loan: $838,281
• •A 15-year term at the same rate costs $3,146/month but saves $272,019 in interest
• •With a 20% down payment, the home price would be $437,500